Joseph Rabito, left, executive deputy commissioner OGS, Lt. Governor Robert Duffy and Mayor Jerry Jennings unveil plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. ... more

Photo: Michael P. Farrell

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Lt. Governor Robert Duffy announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Lt. Governor Robert Duffy announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Lt. Governor Robert Duffy, at podium, announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Lt. Governor Robert Duffy, at podium, announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Lt. Governor Robert Duffy announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Lt. Governor Robert Duffy announces plans for a $47 million rehab of Building 5 at the Harriman State Office Campus on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Lt. Governor Robbert Duffy, center, leaves a press conference at Thursday, Aug. 15, 2013, after announcing plans for a $47 million rehab of Building 5, pictured, at the Harriman State Office Campus in Albany, N.Y. (Michael P. Farrell/Times Union) less

Lt. Governor Robbert Duffy, center, leaves a press conference at Thursday, Aug. 15, 2013, after announcing plans for a $47 million rehab of Building 5, pictured, at the Harriman State Office Campus in Albany, ... more

Photo: Michael P. Farrell

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Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Times Union reporter Jimmy Vielkind sits i an old bank of phone booths during a tour of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union) less

Times Union reporter Jimmy Vielkind sits i an old bank of phone booths during a tour of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. ... more

Photo: Michael P. Farrell

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The old mail room at Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

The old mail room at Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Former office space at Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Former office space at Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (Michael P. Farrell/Times Union)

Photo: Michael P. Farrell

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Artist rendering of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (photo provided)

Artist rendering of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (photo provided)

Photo: Michael P. Farrell

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Artist rendering of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (photo provided)

Artist rendering of Building 5 at the Harriman State Office Campus which the state announced plans for a $47 million rehab of on Thursday Aug. 15, 2013 in Albany, N.Y. (photo provided)

Photo: Michael P. Farrell

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And now the questions about Harriman plans

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Albany

Thursday's announcement that 1,400 public employees will be moved to Harriman State Office Campus was greeted with questions about the pace of private development there, and whether there's any clear path forward.

"I don't have a problem with this," said Albany Mayor Jerry Jennings, who is leaving office this year. "We've had a lot of discussions for years, and we have a lot of agencies now that are communicating with each other that weren't before, which will hopefully expedite some of the proposals that might come down the road."

Under the new plan, Harriman's Building 5 will be rebranded as the Business Services Center, which centralizes back-office functions such as purchasing, human resources and payroll that gubernatorial aides said were unnecessarily replicated across state agencies.

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Gov. Andrew Cuomo has not disclosed a vision for the Harriman tract, which city officials see as a linchpin of economic growth and municipal budgetary stability. State officials led by Lt. Gov. Bob Duffy said the administration is "focusing heavily" on the Harriman campus as a "great state asset," and said it may become eligible to host a tax-free zone under the upcoming START-UP NY program.

"There are discussions about other state assets coming here in consolidation, but also there are other discussions about potential private investment. START-UP New York, which the governor unveiled a few months ago — this is a prime area for that," said Duffy. "But nothing has been solidified, there are no deals being discussed now, but a lot of work, a lot of talk. Look at this campus. It's immense, but there's a lot of potential."

Other officials were skeptical. Common Councilman Michael O'Brien said he is worried about the possible impact on the city's budget, which lawmakers will begin crafting in October.

"Not only is that a big disappointment, but it's disheartening in the way it's done," he said. "Albany has this built-in hole — last year it was $8 million — and the long-term plan for filling it had always been smart development at Harriman. ... That's all unballed."

Rivals to succeed Jennings, mayoral candidates Corey Ellis and City Treasurer Kathy Sheehan, greeted the news with caution about its effects on downtown real estate.

"I would like to see the efforts that were under way years ago, and seem to have been derailed, re-engaged," Sheehan said.

But development is now back in the hands of the Office of General Services, which manages all state real estate. Plans for new buildings at Harriman to be developed by Columbia Development have never gelled.

"If their deal fell apart with Columbia, why hasn't my phone rung? My number was in our proposal — it hasn't changed," he said. Carr also questioned the $47 million state officials said they planned to spend on asbestos abatement and rehabilitation for Building 5, a seven-story, 235,000-square-foot structure that was built in 1961 and until 2004 housed employees from the Department of Transportation.

Joe Rabito, OGS executive deputy commissioner, said the state will save $17 million in 10 years by not renting space for employees. Earlier this year, officials advertised for 325,000 square feet of office space in the city's downtown core.

The rehabilitation of Building 5 comes after a "restacking" of state employees to account for thinned ranks, and to reduce the need for leasing private office space around the Capital Region.

"This is another example of something we inherited that we are starting to fix," Rabito said of Harriman. "It has been two years and we have been focusing our economic development energies on areas of the state that need it the most. ... Now that there's activity and revised interest and revised need, you will see the Cuomo administration focusing on the Harriman campus more."